Fintech platform Paytm is all set to enter the ride-hailing space by offering auto-rickshaw services through the Open Network for Digital Commerce (ONDC), as per a report by Moneycontrol. The autorickshaw service will be available in select cities, including Delhi, Bengaluru, and Chennai.
As of now, Paytm has kept the ride-hailing feature in testing mode. It is visible to some users. Paytm entered the ONDC space through several categories, including fashion, groceries, and food delivery. In 2023, Paytm founder Vijay Shekhar Sharma said that the company will onboard around 10 million merchants in ONDC by the end of 2025. Further, Sharma said that 11.8 million users already used ONDC via Paytm for shopping.
A source who spoke to Moneycontrol said, “There is a lot of software testing and integration that goes into each rollout. There is no reason why Paytm will not also get into cab bookings like Ola and Uber at a later stage.”
An independent company named PAI Platforms is in charge of running the Paytm app's ONDC functionality. The founder and CEO of Paytm, Vijay Shekhar Sharma, supports this entity even though the financial company has no ownership or investment in it.
According to ONDC MD & CEO Thampy Koshy, the number of merchants on the government-sponsored platform is likely to increase in the upcoming year, with approximately 3 lakh merchants currently registered.
As reported by PTI, at an event, Koshy said, “We started with 600 merchants on board in January last year. At present, there are around 3 lakh merchants on board. In the coming year, we expect this to multiply and build momentum. At least ten times the growth I expect in the coming year," Koshy said on the sidelines of an event here.”
